The inability to access inputs is often cited as a major barrier to increasing the productivity of farms and improving the livelihoods of rural farmers. One Acre Fund (OAF), known as Tubura in Rwanda, has served more than 113,500 farmers since it started operations in the country in 2007, and now employs more than 1,400 staff members. One of their programs aims to tackle this barrier by working with agrodealers, providing them with credit for OAF seed and other inputs, such as much-needed fertiliser so that they can stock their shops with good quality products. OAF-supported agrodealers can expect to make US$2000-3000 per year in profit.

On a recent visit to Rwanda, OAF took us to meet Odette Dusabuwera, an agrodealer from Rubengera, in Western Rwanda, to find out how this approach was working for the agrodealers and farmers. [Read more…]

The role of big business in African agriculture often divides opinion. Some seeing it as an opportunity for sustainable economic growth in the sector, some as a new form of colonialism with richer countries exploiting Africa’s food growing conditions and spare land to supply their own countries. Whether a positive development step or a risk to food security, agribusiness on the continent looks set to grow.

Agriculture, particularly the development of agribusiness and agro-industry sectors, has been the driver of economic growth in countries across the globe. In Africa, agribusiness and agro-industries account for more than 30% of national incomes as well as the bulk of export revenues and employment. Given its links to smallholder farming, development of agribusiness could be used to help tackle poverty and hunger in rural communities.

Colonial systems of governance were designed to extract resources from Africa for use elsewhere rather than processing and adding value within the continent. Agribusiness could develop the value addition arm of the agricultural industry and help reduce Africa’s dependence on unprocessed commodities where the bulk of the average retail price is retained by the countries in which the commodity is consumed. The introduction of new players in the agricultural sector could also help diversify sources of growth and exports to reduce reliance on a limited number of export commodities.

Kenya since the 1990s have invested in products, internal systems, and supply chains to supply fresh vegetables to British supermarkets. Considered a success, Kenya’s experience shows that a well-organized industry in a low income country through collaboration between the public and private sectors and the strengthening of links between businesses and educational institutes, can use standards for competitive gain.

The United Nations Industrial Development Organisation (UNIDO) book, Agribusiness for Africa’s Prosperity, outlines the current status of agribusiness and agro-industrial activities in Africa, and situates them in historical and global context. It analyses the opportunities for diversified growth, and assesses the existing and potential sources of demand growth for agribusiness development in Africa.

With the advent of agribusiness, the whole agricultural sector could benefit through improved infrastructure, access to technology and better functioning markets. Indeed for companies to invest in African agriculture, an enabling business climate must be developed through government and international partnership, action that may enable farmers to capitalise on market opportunities coming from better trade links and growing urban populations. An emerging, productive and modern agricultural sector may also act to engage youth in the agricultural sector (youth unemployment is a growing concern on the continent).

The 2013 World Bank report, Growing Africa. Unlocking the potential of agribusiness, documents the potential of the agribusiness sector in Africa through examples and highlights the important of good policies, a conducive business environment, and strategic support from governments. Agribusiness in general being seen as needed to build global competitiveness and as an opportunity for growth employment and food security. [Read more…]

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One Billion Hungry: Can We Feed the World?

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This blog is run by Agriculture for Impact (A4I), an independent advocacy initiative led by Professor Sir Gordon Conway, author of the book One Billion Hungry: Can We Feed the World?

A4I aims to enable better European government support for productive, sustainable, equitable and resilient agricultural development in sub-Saharan Africa, focusing in particular on the needs of smallholder farmers.

Agriculture for Impact also convenes the Montpellier Panel, a group of European and African experts in the fields of agriculture, trade, ecology and global development.

It is based at Imperial College London and is supported through the Bill & Melinda Gates Foundation